PPF Calculator
Calculate your Public Provident Fund maturity amount, interest earned and year-wise balance growth.
🏦PPF Details
Total Invested
₹22.50 L
Interest Earned
₹18.18 L
Investment vs Interest
Year-wise Growth
How the PPF Calculator Works
What Is PPF and Who Should Use It
Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It's been available since 1968 and remains one of the most popular investment options for risk-averse Indians seeking tax-free returns. The scheme is open to all Indian residents, including salaried employees, self-employed individuals, and even minors through a guardian.
PPF is a 15-year scheme, though it can be extended in blocks of 5 years after maturity. The interest rate is set by the government every quarter — currently 7.1% per annum. Contributions of ₹500 to ₹1,50,000 per year can be made, and the investment qualifies for Section 80C deduction under the old tax regime.
The standout feature: PPF enjoys EEE (Exempt-Exempt-Exempt) tax status. The investment is deductible under 80C, the interest earned is tax-free, and the maturity amount is also tax-free. No other mainstream investment — including NPS, ELSS, or tax-saving FDs — provides this level of tax efficiency across all three stages.
How PPF Interest Is Calculated
PPF interest is compounded annually but calculated monthly. The algorithm is straightforward: whatever balance exists in your PPF account on the 5th of each month earns interest for that month. Contributions made before the 5th earn interest for the full month; those made after the 5th start earning from the next month.
The formula for maturity is: Maturity = P × [((1+r)^n − 1) / r], where P is your annual investment, r is the annual rate (7.1% = 0.071), and n is the number of years. If you invest ₹1.5 lakh every year at 7.1% for 15 years, the maturity amount is approximately ₹40.7 lakh — an interest gain of ₹18.2 lakh on top of ₹22.5 lakh invested.
The yearly interest is added to your principal at the end of each financial year, so compounding accelerates over time. In year 1, you earn ₹10,650 interest on ₹1.5 lakh. In year 15, you earn approximately ₹2.7 lakh interest on the accumulated balance. The final year's interest alone exceeds the entire year-1 balance.
Why the 5th-of-the-Month Rule Matters
Most PPF investors don't know that the timing of contributions affects returns. Interest is credited based on the balance on the 5th of each month. If you deposit ₹1.5 lakh on April 3rd, you earn interest for the entire April month. If you deposit on April 6th, you lose that month's interest on the ₹1.5 lakh — roughly ₹880 in year 1.
Over 15 years of annual contributions, depositing before the 5th of April vs after the 5th can mean the difference of ₹30,000–₹40,000 in maturity amount. This is the equivalent of adding a bonus interest payment.
The best practice: deposit your annual ₹1.5 lakh in a single lump sum before April 5th of each financial year. This maximizes the interest earned for the year. If you can't make a lump sum, contribute monthly before the 5th of each month.
Step-by-Step Worked Example
Let's calculate what ₹1,50,000/year invested for 15 years at 7.1% interest produces. This is the maximum contribution most investors make.
- 1Year 1: Contribute ₹1,50,000. Interest = ₹1,50,000 × 0.071 = ₹10,650. Balance = ₹1,60,650.
- 2Year 2: Add ₹1,50,000 → ₹3,10,650. Interest = ₹3,10,650 × 0.071 = ₹22,056. Balance = ₹3,32,706.
- 3Year 5: Balance ≈ ₹9,04,000.
- 4Year 10: Balance ≈ ₹21,48,000.
- 5Year 15: Total invested = ₹22,50,000. Interest earned = ₹18,22,000. Maturity = ₹40,72,000.
Result
Total amount invested over 15 years: ₹22,50,000
Total interest earned: ₹18,22,000
Maturity amount: ₹40,72,000
Return multiple: 1.81x
Effective CAGR: 7.1% (fully tax-free)
Post-tax equivalent: 10.3% if you were in the 30% tax bracket (because PPF returns are tax-free)
Key Benefits & Use Cases
When to Use This Tool
- ✓Building a long-term tax-free corpus for retirement, child education, or a home down payment 15+ years away.
- ✓Section 80C tax saving under the old tax regime — ₹1.5 lakh deduction at the 30% bracket saves ₹46,800 in tax.
- ✓Creating a safe, guaranteed-return investment to balance a portfolio heavy in market-linked equity.
- ✓Post-retirement income planning — extending PPF in 5-year blocks after maturity provides steady tax-free returns.
- ✓Building a corpus for goals where capital preservation matters more than growth.
Why It Matters
- →EEE tax status — investment, interest, and maturity all tax-free — the highest tax efficiency available.
- →Government-backed, zero credit risk. Backed by the sovereign guarantee of India.
- →Fixed, predictable interest rate, revised quarterly but historically stable.
- →Low minimum contribution (₹500/year) makes it accessible to all income levels.
- →Partial withdrawal allowed from year 7, providing some liquidity.
- →Loan against PPF available between years 3–6 for emergencies.
Who Should Use This Calculator
- ★Risk-averse investors who prioritise capital safety over high returns.
- ★Taxpayers on the old regime who want to use their 80C limit efficiently.
- ★Parents building a corpus for a child's higher education 15+ years away.
- ★Anyone aged 40–55 looking for a stable fixed-income component in their portfolio.
Government Backed
PPF is a safe, government-backed savings scheme with guaranteed returns.
Tax Free Returns
PPF enjoys EEE tax status - exempt at all three stages.
Year-wise Breakdown
See detailed year-by-year growth of your PPF investment.
How to Use
Enter Yearly Amount
Set your annual PPF investment (max ₹1.5 lakh).
Set Interest Rate
Current PPF rate is 7.1% (updated quarterly by govt).
Choose Tenure
Minimum 15 years, extendable in blocks of 5 years.
View Maturity
See total corpus, interest earned and growth chart.
The Formula
A = P × [((1+r)^n - 1) / r]Frequently Asked Questions
What is PPF?
PPF (Public Provident Fund) is a long-term government savings scheme with attractive interest rates and tax benefits under Section 80C. It was launched in 1968 and remains one of the safest investment options in India with EEE (Exempt-Exempt-Exempt) tax status.
What is the current PPF interest rate?
The current PPF interest rate is 7.1% per annum, which is revised quarterly by the Government of India. Historically, rates have ranged between 7.1% and 8.7%. The rate is announced at the end of each quarter for the following quarter.
What is the minimum and maximum PPF investment?
Minimum annual investment is ₹500 and maximum is ₹1,50,000 per financial year. Contributions can be made in a single lump sum or in up to 12 instalments per year. Investing more than ₹1.5 lakh in a year doesn't earn interest on the excess and doesn't qualify for tax deduction.
Is PPF tax-free?
Yes, PPF has EEE (Exempt-Exempt-Exempt) tax status. Investment qualifies for 80C deduction, interest earned is tax-free, and maturity amount is tax-free. The effective post-tax return of 7.1% is equivalent to 10.3% pre-tax for someone in the 30% bracket — better than most alternatives.
Can I withdraw from PPF before maturity?
Partial withdrawal is allowed from the 7th year. You can withdraw up to 50% of the balance at the end of the 4th year or the preceding year, whichever is lower. A loan against PPF is also available between years 3 and 6, up to 25% of the balance at the end of year 2.
What happens after 15 years?
After the initial 15 years, you can extend in blocks of 5 years with or without further contributions. If extended with contributions, the account continues to earn interest and you can contribute up to ₹1.5 lakh per year. If extended without contributions, the existing balance continues to earn interest tax-free.
Can I open multiple PPF accounts?
No — a single individual can have only one PPF account. A second account opened in your name would be closed, and any interest earned on it would be forfeited. However, you can open separate accounts for each of your minor children.
When should I deposit in PPF for maximum returns?
Deposit before the 5th of any month to earn interest for that full month. For maximum returns, deposit your ₹1.5 lakh in a single lump sum before April 5th of each financial year. This can add ₹30,000–₹40,000 to your final maturity amount over 15 years compared to depositing monthly.
Is PPF better than ELSS?
Depends on your goals. PPF is safer (7.1% fixed, government-backed, EEE tax status) and better for capital preservation. ELSS has higher expected returns (12–15% historical) with a shorter 3-year lock-in, but is market-linked with real risk. Many investors hold both — PPF for safety, ELSS for growth.
Can NRIs invest in PPF?
NRIs cannot open new PPF accounts as of 2018 (notification changed). Existing PPF accounts opened while resident can continue until maturity, but cannot be extended beyond that. Interest earned remains tax-free in India, though it may be taxable in the NRI's country of residence.
Reviewed by AutoWealthLab Editorial Team
This calculator and its accompanying guide are maintained by the AutoWealthLab editorial team. Every formula is verified against standard financial references, and results are cross-checked with independent calculators before publishing. Our tools are updated whenever tax rules, interest rate benchmarks, or regulatory formulas change.
Last reviewed: October 2026 · Methodology: Standard amortization and compound interest models · Learn more about our testing process